Malta has been classified as the fifth most tax-friendly country for companies according to the 2008 Forbes Tax Misery and Reform Index. The index measures the amount of increased ‘misery’ or ‘reform’ toward company tax-friendliness since it began tracking progress in 2000.

The Index also indicates that Malta is also the most attractive country in the European Union in terms of taxes and social security contributions paid out by companies. With an overall misery index of 63, Malta compares well with Cyprus (with an index of 71.3) and Luxembourg (with an index of 107.2).

The index gauges whether a country’s policy attracts or repels capital and talent. This augurs well for Malta’s prospects in attracting further international M&A activity and foreign direct investment.

Malta was only surpassed by Georgia, Hong Kong, the United Arab Emirates and Qatar.

www.forbes.com/global/2008/0407/060_2.html